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Were I in the position of having employees, you can damn well know if I had increased cost for labor, my prices for my goods and services would rise to compensate my business for the added expense.
Any business I would own, would not be a charitable business, and most sensible business owners would take the same position as me, or they would be soon out of business.
Bob.
Exactly.
I have employees. Every forced dollar an hour increase in min. wage costs the employer/business that dollar (or dollarS) per hour and then some: because employers also have to increase their portion of what they pay per employee when it comes to "paycheck taxes". Both federal and state.
So yes. I raise prices to offset any forced increase in minimum wage. When my clientele notice and complain I ask them if they voted for the gov in office (I already know the answer, those who didn't vote for him are more than AWARE that prices are going to increase and don't say much other than that the gov's an idiot and so is anyone who voted for him). The answer is always "yes". Then blame yourself - he ran on this platform and who exactly did you think was going to "pay" for it? Hard to believe how DUMB some people are.
Sales tax goes up?
I raise prices.
I also don't think many understand that running a cash register, stocking shelves, asking if you'd like paper or plastic, etc. isn't exactly a job where one brings REVENUE to a small business. Static jobs. That a 16 year old could do. To make some extra cash to pay for college text books, gas or beer money, not support a family. Not a "living wage".
Except this doesn't happen. The shifts need to be covered regardless of how much the employee is being paid. So they might reduce the store hours, or close shop completely. But they can't make the cashier sweep the floor while he's making the burgers and change at the same time. The boss still needs people to perform these tasks, and he's still required to pay them.
It's called multi-tasking. When the cashier is not waiting on a customer, that cashier will be mopping the floor. My local McDonalds only has 1 cashier station now. The self-serve kiosks handle most orders now.
I said nothing about cutting wages.
My point is, when wages increase, so does the cost of living, to make up for what business must pay in increased wages.
A simple example would be:
You want to purchase a new tv, let's say from Best Buy.
The price is $ 649.99.
You plunk down you bucks, and buy it.
Three months later Best Buy , because of a state mandated minimum wage, now has to raise the price of that tv to $9 69.00 to cover what the increase in wages cost them.
The people that now got the raise, will have to shell out nearly one thousand dollars for the same tv that before the raise, was only $649.00.
Sure, they have more money to spend, but the prices are higher, so what have they gained?
Now, show me how raising the minimum wage benefits anyone.
Bob.
No, it's not always going to end up that way. For proof of want I mean look at Lamar, CO. The minimum wage there is $11.10. Yet, the cost of living index is only 76.6 and unemployment rate is 3.2%.
The situation has far more to do with how desirable a city is to move to. Lamar isn't desirable.
I wouldn't be surprised if a $649.99 TV at Wal-Mart in Lamar is little different in price than the same one at the Wal-Mart in fairly nearby Guymon, OK where the minimum wage is only $7.25. Interestingly enough, the cost of living in Guymon is somewhat higher at 79.6.
In states where the minimum wage is higher than the Federal minimum wage the unemployment rate will be lower when the minimum wage is lowered. That's basic economics and common sense.
I've never heard of such a thing happening so there is nothing to base your point on. I can't imagine people in a state wanting to vote to lower the state minimum wage to test your theory out.
Traditionally, unions have supported minimum wage initiatives because their contracts have been directly or indirectly tied to the minimum wage. For instance, UNITE contract that covered workers in Pennsylvania, Ohio, and South Jersey said the following: “Whenever the federal legal minimum wage is increased, minimum wage [in the agreement] shall be increased so that each will be at least fifteen (15%) percent higher than such legal minimum wage.”
Contracts for Cal Fire Local 2881, which represents 6,000 California firefighters, and UFCW Local 1099’s agreement with CVS have had similar stipulations. Other contracts, such as those signed by Retail, Wholesale, & Chain Store Food Employees Union Local 338 and UFCW 1262, also stipulated that minimum wage increases trigger an automatic return to the bargaining table, where new — usually higher — compensation is negotiated.
It would be interesting to see where the money came from to sponsor two past petitions that led to raising the minimum wage in Arkansas twice. It's goes up to $10 Jan. 1.
I've never heard of such a thing happening so there is nothing to base your point on.
You don't understand basic economics yet you comment? lol Why are you involved in this thread?
You don't understand the concept that someone wont hire a person for $8 an hour and will do the job themselves but will hire someone if the pay rate is $6 an hour? You can't wrap your head around that? lol
Quote:
Originally Posted by StillwaterTownie
I can't imagine people in a state wanting to vote to lower the state minimum wage to test your theory out.
Because they, like you, have little understanding on basic economics and business and property rights.
Why don't you explain why uninvolved people should have any say so on what 2 other people want to agree on with a private contract when no ones rights have been violated?
Afte that why don't you tell everyone here how many people are on minimum wage. Go ahead tell us the percentage of people who are on minimum wage which as anyone who has even the slightest bit of knowledge fully understands that minimum wage was never, ever meant to be a living wage.
I'll save you some time, just over 1% of workers make minimum wage or less and many are teenagers. Minimum wage is nothing more than feel good legislation from government.
I always get a kick out of rich guys telling poor minimum wage guys that minimum wage hikes are bad for them.
Moderate increases in the minimum wage have had small effects since forever.
Note I said moderate increases.
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